**Summary**
Pennon Group PLC released a trading statement on March 10, 2026, highlighting key performance metrics for the period from September 30, 2025, to March 9, 2026. The company reported a 55% year-on-year increase in EBITDA, despite challenges such as weather-related cost pressures and higher costs in the first year of the regulatory cycle. Underlying profitability is expected to be within market expectations for 2025/26, though at the lower end. Pennon targets a 7% RORE over K8, supported by financing and capex efficiencies, partially offset by net ODI penalties.
Wastewater performance improved, with a 40% reduction in pollutions and a 55% decrease in normalized pollutions, alongside a 17% reduction in storm overflow use. Water quality in Water Services remained strong, and water resources exceeded targets due to high rainfall. However, exceptional rainfall led to operational pressures, resulting in anticipated net ODI penalties for 2025/26.
Pennon’s AMP 8 capital programme and price control deliverables are on track, with efficiencies being realized. The company’s liquidity and balance sheet remain robust, supporting its largest-ever capital programme. Regulatory investigations into past wastewater and water quality incidents are progressing, with expected conclusions in 2026.
Pennon Power’s renewable energy portfolio is advancing, with two sites already energised and the remaining sites on track to generate 40% of the Group’s total energy consumption by FY27. Keith Haslett will join as CEO on April 1, 2026. Full-year results for 2025/26 will be announced on June 2, 2026. The statement includes a cautionary note on forward-looking statements, highlighting potential risks and uncertainties.